Good evening StockBandits!

Early strength didn’t last long this morning as the sellers emerged once again to erase the day’s gains.  That brought a steady downtrend into mid-day, when a bounce morphed into a reversal.  Prices edged into positive territory by the end of the day, and although it wasn’t by much, it was notable that they did recover.

What was lacking today was volume on the upside, which makes today’s bounce difficult to trust at face value.  We had seen a pretty good move lower from Thursday’s highs of last week, and a little relief may simply have been needed.  It may still carry over into tomorrow though, so I’m not counting anything out.

We’re in an environment right now in which anything goes, so it’s certainly no time to get married to an opinion.  I’m trying to stay flexible, and if more technical action surfaces which warrants a more bullish stance, I’ll embrace it.  For the time being, I’m holding a few shorts and as we head into tomorrow I’m eyeing a few potential plays in both directions.  As more clean patterns arrive and we get some price action which is a bit more steady, I’ll be looking to add more overnight exposure – whichever way that may be.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: ORLY, BVN, CLH, EVVV, CAGC, RIG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

CSTR, DM, VCI, PACR, GG, ORLY, BVN, HMIN, SBH, CLH, EVVV, PEI, THOR

Bearish Watch:

CAGC, CF, MCO, RIG, VPRT, DO, ATW, LLL, EL, UNT, CIT, SNDA, ATK

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Thursday’s weak finish pointed to a possible rollover move in progress for the market, and that became a full-fledged reality on Friday as the indexes showed weakness the entire day.  Early selling pressure brought a downside gap in the morning, which was quickly followed by further declines.  By the closing bell, the indexes had each shed 1.5% to 2%.

It was a very interesting week, starting out with massive gaps on Monday, some additional strength on Tuesday and Wednesday, and then a hard selloff on Thursday and Friday.  Overall the indexes were net positive, but the poor finish leaves the bulls once again looking vulnerable to additional damage.

This secondary selloff was somewhat to be expected after the large V-shaped rebound we saw, but now some big questions will surface, like “will the May lows hold?”  It’s too early to know for sure at this point, but it certainly appears that this market has just carved out a lower high on the daily charts of each of the indexes, and that spells caution on the long side until some stability is seen.

On another note…. Thank you to those of you who have expressed concern for my son with his surgery on Friday.  The procedure went well and he’s recovering extremely well.  It was a planned operation, and wasn’t expected to be complicated, but when it’s your child they’re operating on nothing seems minor!  Again, thank you very much to those of you who checked in on me over the weekend – all is well.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: PHYS, GOLD, GMCR, HSNI, PNRA

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

PHYS, SLW, ABX, GOLD, TWM, DXD, PAAS, GG

Bearish Watch:

GMCR, CF, F, RTI, FAST, CECO, LLL, EL, UNT, PH, WCC, HSNI, AVB, PCP, ATLS, CNX, SHLD, PNRA, TRN, BIG, VMC, GBCI, BEZ, JLL, HSC, LYV, NIHD, VNO, ORLY

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Last night I cautioned that I’d avoid the long side after such a large, V-shaped bounce, and today’s market action validated that stance.  We saw 1% declines across the board today, as early intraday trading ranges failed to hold late in the session when sellers re-emerged to leave stocks on their lows by the closing bell.

The daily charts have now bounced big, stopped shy of prior support (turned resistance), and now are starting to head lower.  This could prove to be a head-fake dip before a bounce resumes, but at this point the buyers have stepped aside and prices appear vulnerable to another decline.  I remain unwilling and uninterested in making new buys here (for anything but inverse ETF’s, which are included in tonight’s video), so my focus here is on the short side due to all the bearish charts and failing bounces.

I won’t be day trading on Friday, as explained in tonight’s video, but there are a handful of swing trades I’m setting up for potential plays.  Volatility has returned to the market, so although even a brief rest would go a long way towards creating some new bases, we may not get much of a rest since this market is on the move so much lately.  Needless to say, interesting times of opportunity are upon us after a very quiet rally.  Make it a great Friday!

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: VXX, FAZ, TWM, SDS, QID, BP, LLL, EL, UNT

Swing Trading Candidates:

LLL sold off hard recently and has only managed a partial bounce since then.  That has created a bearish rising wedge on the daily chart, setting up a well-defined entry for me on the short side.  A move below the lower rising trend line of the wedge at $89.40 will trigger a short sale for me (stop & target levels are on the Hit List post).

Chart courtesy of StockFinder

EL rolled over after a failed breakout and in recent days has bounced with diminishing enthusiasm.  This created a bearish rising wedge, which if broken at $63, will trigger a short sale for me.

Chart courtesy of StockFinder

UNT sold off sharply last week and has bounced since then on diminishing volume only a portion of the way back up.  A small rising trend line of support has emerged over the past few days, and if that gets broken at $42.20, I’ll be shorting this stock.

Chart courtesy of StockFinder

Bullish Watch:

BGZ, SKF, SMN, VXX, FAZ, TWM, SDS, DXD

Bearish Watch:

CF, MON, F, LCAPA, PBR, DWA, MTG, AGU, POT, BP, BLK, DO, LLL, EL, UNT, AMG, AVB, PCP, XHB, FO

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

The bounce we saw on Monday and Tuesday carried over yet again into today’s trading.  Early strength was built upon throughout the session, leaving the indexes at their best levels of the day by the closing bell.

Just as last week’s downside move appeared to be an overreaction, this bounce is shaping up in much the same manner.  Prices have recovered a huge amount of what was given back last week, but volume is declining across the board.  Toss into the mix the fact that broken support could easily serve as resistance going forward, and it leaves me extremely cautious here when considering the long side.

I don’t make market predictions because I believe our role as traders is to respond to whatever comes along (rather than initiate a position and then hope), so I’ll refrain from doing so here.  I will say though that I have no interest in making buys at this juncture, if for no other reason than a pullback or some rest is becoming increasingly likely.  At some point, traders who got caught in last week’s downdraft may wonder if this is a second chance to do a little selling, and that could easily put a speed bump in the path of this bounce.

So heading into Thursday, I see a handful of plays which interest me for day trades on the short side.  If they trigger, I’ll take them.  If not, I won’t be forcing anything.  We should be able to get more aggressive with the swing trades again once we see even a brief rest, but so far we’ve seen nonstop downside followed by nonstop upside.  ‘V’ reversals are nearly impossible to catch, so I’m being patient here until some better conditions arrive – and they will.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: BP, DO, EL, RYL, OSG

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

NTRI, MGA, ADS, ZION, SFI

Bearish Watch:

MON, ROST, SQM, BP, DO, ATW, LLL, EL, UNT, RYL, OSG, RDC, ATLS, BHI, BAX

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

With the markets in crumble mode last week and in massive-relief-gap mode yesterday, some indecision seemed fitting today and that’s just what we got.  A morning gap to the downside seemed small compared to recent days, although it was sizeable compared to the minor gaps we were seeing just a couple of weeks ago.  Nonetheless, it was filled as the market ran well into positive territory today, only to stumble in the afternoon and finish not far from Monday’s closing levels.

Despite the lack of progress, today’s bar was definitely helpful for the charts of many individual stocks which are badly in need of some rest and consolidation.  More time is needed to really create some high-quality patterns in most stocks, but every day of indecision counts in an environment where prices have been zipping back and forth with tremendous velocity.

The inability of the indexes to hold onto their gains left the daily charts with the appearance of a failed bounce in progress.  Prices have only recovered partially from last week’s damage, and former support is still above current levels (now resistance).  Combine that with the fact that many traders were simply caught off guard without a chance to sell into the extreme weakness, and the case for selling rallies for the next little while can easily be made.

Heading into tomorrow, I see a handful of plays which interest me, but only for day trades. The volatility has become very high very fast, which means that holding overnight carries with it considerable added risk. Many stocks are beginning to consolidate here, but most of them still need additional time before they’re ready for multi-day plays (as determined by pattern maturity and the ability to manage risk appropriately on an overnight basis in a volatile environment).  My preference here is to keep my timeframe brief in an effort to manage risk, as individual stocks can turn on a dime without looking back in an environment like this. Once things settle down a little bit, I’ll certainly be looking to add some swing trades.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: NTRI, MTG, BP, RYL, HP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

NTRI, NFLX, KERX, SSRI, CYN

Bearish Watch:

MON, MEE, F, MTG, DCTH, BP, DO, ATW, LLL, UFS, BEAV, TWC, EL, UNT, ACL, GS, APOL, RYL, BKE, PH, AMG, HP, RDC, HSNI

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Good evening StockBandits!

Encouraging news out of Europe regarding financial relief sent stocks screaming higher this morning, with some 90% of the day’s gains coming on the opening gap.  We saw the NAZ gap 100 points, the S&P gapped 50, and the DJIA gapped roughly 400 points.

What’s somewhat frustrating (or comical) about moves of this magnitude is that in order to participate in today’s upside, you had to do one of 2 things….(1) buy into extreme weakness prior to the weekend and hope you timed a bounce perfectly, or (2) stay long last week during the utter carnage we saw and endure all kinds of pain before getting a little bit of your money back today.  No thanks!

I was pleased to be in cash at the end of last week, and although I didn’t catch today’s gap up, I also happened to make money last week while so many were getting pounded by the relentless selloff.  Everything in trading is a trade-off (no pun intended), but for those of us who take it seriously, risk absolutely must be managed.  The fact of the matter is that in the current environment, that’s just not very possible on an overnight basis.  That means at the moment it’s a day trader’s market, so if that doesn’t include you, don’t worry.  The dust will settle and we’ll see some opportunities surfacing again, but right now defense is the name of the tune, so the sidelines are a perfectly alright place to be.

Heading into tomorrow, I see a handful of plays which interest me, but only for day trades. The volatility has become very high very fast, which means that holding overnight carries with it considerable added risk.  Today was a perfect example of that. My preference here is to keep my timeframe brief in an effort to manage risk, as individual stocks can turn on a dime without looking back in an environment like this. Once things settle down a little bit, I’ll certainly be looking to add some swing trades.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: ATW, LLL, ABX, SSRI, F, MON, CAM, BP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

IAG, KERX, SLW, ABX, SSRI, ANV

Bearish Watch:

CF, JOE, MON, F, AGU, CAM, BP, APC, RIG, DO

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff

Happy Mother’s Day StockBandits!

Last week we saw recent concerns validated as the indexes broke down very hard from their recent high-level trading ranges.  Volatility had been picking up, but once short-term support was broken, the selling really accelerated.  That opened the door for waterfall-type downside moves, producing index declines on the week between 5-8%.

Thursday’s action was an all-out crash, as there were virtually no buyers in the face of a massive selloff.  Although prices were able to recover slightly from the worst levels set on Thursday, we still have yet to see a 1-day bounce.  Ending the week with 4 consecutive declines of significance really squashes the confidence the dip-buyers have exhibited for such a long time.  Clearly, the landscape has changed, both from a technical and a psychological perspective.

With that being the case, I cannot stress enough the importance of caution here.  While prices for most stocks are far lower than they were just a few days ago, it doesn’t mean they cannot go lower.  At the same time, the nonstop selling we’ve seen makes this a high risk spot for initiating short sales for anything but quick trades, simply because the prospects for a relief bounce are increasing by the day.  Suffice it to say, this is a time where cash is a great thing to have on hand (as I’ve noted here several times recently), and where you’d better be on your toes if you’re looking to participate in this tape.  The sidelines aren’t a bad place to be for a couple of days, so if that’s where you feel most comfortable, that’s entirely fine.

Heading into Monday, I see a handful of plays which interest me, primarily for day trades. The volatility has become very high very fast, which means that holding overnight carries with it considerable added risk.  My preference here is to keep my timeframe brief in an effort to manage risk, as individual stocks can turn on a dime without looking back in an environment like this.  Once things settle down a little bit, I’ll certainly be looking to add some swing trades.

Please leave your comments and/or questions below if you have any, I always enjoy the interaction.

Here is tonight’s video:

The Bandit Broadcast Video – Click to Watch!

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Video Stocks Discussed: ANV, SLW, SWC, CAM, BP

Swing Trading Candidates:

NONE TONIGHT

Bullish Watch:

ANV, IAG, SLW, DM, CRS, VCI, EGO

Bearish Watch:

UTHR, HAR, SOHU, GMCR, JOE, CF, CLF, SWC, IVN, CAM, BP, RIG, CECO

The Hit List will be coming out soon with discussion on open positions and swing trade stops and targets, so be sure to watch for it.

Trade Like A Bandit!

Jeff